2024-05-02 14:50:37 ET
Bitcoin (BTC) plunged to its lowest level in two months on Wednesday. Bitcoin Spot ETFs observed $563 million in net outflows, as seen on CoinGlass. Analysts believe Bitcoin bottom is likely between the $55,000 and $57,000 level.
BlackRock’s IBIT records first daily outflow, worries BTC holders
Bitcoin holder sentiment turned negative as Spot ETFs recorded their largest single day outflow. BlackRock’s IBIT lost $37 million for the first time since its inception, a cause for concern among market participants.
Bitcoin holdings of spot BTC ETFs
Bitcoin wiped out 8% of its value since Monday, down to $59,100 on Binance. The asset is under the influence of macroeconomic factors, actions of institutional investors and capital rotation observed among retail traders.
The US Federal Reserve left interest rates unchanged as Jerome Powell asserted that inflation is still too high and further progress in bringing it down is not assured. The Fed chair believes that the path forward is uncertain.
The uncertainty has fueled the market wide correction in speculative assets like Bitcoin. Ethereum and Solana based meme coins started their recovery while Bitcoin is hovering below sticky resistance at $60,000. This hints at capital rotation in the crypto market.
Bitcoin bottom is in?
Bitcoin price decline has raised concern among BTC holders. Analysts at crypto intelligence tracker, CryptoQuant, have set a target range of $55,000 to $57,000 demand zone for the Bitcoin bottom.
Bitcoin is nearly 7% away from the bottom of the range. Analysts expect BTC to sweep liquidity at the bottom and offer support for the asset during its price recovery.
The current price represents a meager 23% correction from the all-time high, typical bull market drawdowns are between 30-40%.
While the sentiment among Bitcoin traders is negative, it is still Bitcoin month and there is room for recovery once the asset sweeps liquidity at the bottom.
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